---
kind: "section"
citation: "12 U.S.C. § 5805"
title: "12"
title_heading: "Banks and Banking"
number: "5805"
heading: "Benchmark for loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5805"
units:
  - "Chapter 55 — Adjustable Interest Rate (libor)"
---

# §5805. Benchmark for loans

- (a) **Definitions—** In this section:
  - (1) **Bank—** The term “bank” means an institution subject to examination by a Federal financial institutions regulatory agency.
  - (2) **Covered action—** The term “covered action” means—
    - (A) the initiation by a Federal supervisory agency of an enforcement action, including the issuance of a cease-and-desist order; or
    - (B) the issuance by a Federal supervisory agency of a matter requiring attention, a matter requiring immediate attention; or a matter requiring [board](/usc/12/5802.md?p=5) attention resulting from a supervisory activity conducted by the Federal supervisory agency.
  - (3) **Federal financial institutions regulatory agency—** The term “Federal financial institutions regulatory agencies” has the meaning given the term in [section 3302 of this title](/usc/12/3302.md).
  - (4) **Federal supervisory agency—** The term “Federal supervisory agency” means an agency listed in subparagraphs (A) through (H) of [section 3401(7) of this title](/usc/12/3401.md?p=7).
  - (5) **Non-IBOR loan—** The term “non-[IBOR](/usc/12/5802.md?p=12) loan” means any loan that, by its terms, does not use in any way [LIBOR](/usc/12/5802.md?p=15), any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE [Benchmark](/usc/12/5802.md?p=1) Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease, as a [benchmark](/usc/12/5802.md?p=1).
- (b) **Benchmarks used by banks—** With respect to a [benchmark](/usc/12/5802.md?p=1) used by a bank—
  - (1) the bank, in any non-[IBOR](/usc/12/5802.md?p=12) loan made before, on, or after March 15, 2022, may use any [benchmark](/usc/12/5802.md?p=1), including a [benchmark](/usc/12/5802.md?p=1) that is not [SOFR](/usc/12/5802.md?p=19), that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any [benchmark](/usc/12/5802.md?p=1) shall remain subject to the terms of the non-[IBOR](/usc/12/5802.md?p=12) loan, and applicable law; and
  - (2) no Federal supervisory agency may take any covered action against the bank solely because that [benchmark](/usc/12/5802.md?p=1) is not [SOFR](/usc/12/5802.md?p=19).

## Source credit

(Pub. L. 117–103, div. U, § 106, Mar. 15, 2022, 136 Stat. 831.)